Gensler’s Grayscale Ruling Sparks SEC to Re-Examine Bitcoin ETFs

SEC Reevaluating Approaches to Spot Bitcoin ETFs

SEC chair Gary Gensler recently revealed that the agency is rethinking its approach to spot Bitcoin exchange-traded products in light of a recent court decision regarding Grayscale. During an interview with CNBC on Dec. 14, Gensler noted that the SEC has “between eight and a dozen filings” currently in the process.

“We had in the past denied a number of these applications,” he said, “but the courts have weighed in on that.” When asked if he was referring to Grayscale, Gensler responded that the SEC operates “within the laws Congress has passed and how the courts interpret them.”

Crypto Agency and Congress

In August, a federal judge overturned the SEC’s decision to deny an ETF offering from Grayscale Investments through its Bitcoin Trust. Several large asset managers, including BlackRock, Fidelity, Grayscale, Invesco, VanEck, and Valkyrie, are now competing to launch a spot Bitcoin ETF. All applications have been delayed, but analysts are confident that a batch approval will occur in early January.

In a separate interview with Bloomberg’s Kailey Leinz on Dec. 14, Gensler, the head of the crypto agency, sidestepped questions regarding the number of filings for spot Bitcoin products. Instead, he spoke about recent changes to the U.S. treasury market as the focus of the agency’s priorities.

In response to this interview, U.S. Congressman Bryan Steil commented:

“James Seyffart, an ETF analyst from Bloomberg, noted that Gensler is not one to give straightforward answers – he’s an expert at crypto congress and hedging his words.”